London has somehow managed to build a confusing, almost Kafkaesque affordable housing system that shuts out the very people it’s supposed to help, argues Soho Housing’s Barbara Brownlee – it’s time to put that right
A recent argument between City Hall and the government over why only three affordable homes had been built in London between April and June 2023 highlights that urgent change is required to deliver more development, and to meet the commitments laid out in the Mayor of London’s Affordable Housing Programme.
However, London’s affordable housing crisis goes beyond a lack of available stock.
While the centralisation of our economy leads to high demand for homes in London, and the excessively high cost of land in the area makes development extremely difficult, it is, unfortunately, the case that even when affordable housing is available, low-paid workers must overcome several hurdles to access it.
Hidden minimum income requirements, technical terminology, and confusing application processes have created an affordable housing system that shuts out those on average incomes – the very group of people that it is supposed to provide for.
As well as focusing on innovative funding solutions, to truly tackle London’s housing crisis, which has so far remained unchanged through many iterations of planning and housing policies and diminishing grant regimes, the housing sector needs to simplify the different variations of affordable housing, untangle who is eligible, and spell out routes of access for future tenants.
Best foot forward
The Citizens Advice Bureau recently revealed a shocking but not surprising 200% increase in the number of individuals seeking help to fight evictions, due to being unable to pay rent between 2019 and 2023.
Clearly, it is more important than ever that the housing sector focuses its efforts on supporting young people on low wages working full time in the city.
Indeed, ONS in their latest Impact of increased cost of living on adults across Great Britain: February to May 2023 report, found that young adults (aged between 25 and 34) had higher odds of experiencing financial vulnerability than any other age group.
And rental prices continue to soar.
These requirements effectively mean that those on lower incomes are priced out of the very market that was designed and introduced to support them.
Rightmove recently revealed that the average cost of renting in central London is currently £3,059 per month, a figure which is just shy of the average London salary before tax.
These skyrocketing prices, which are leaving many in financially sticky situations, are also breaking down the unique and vibrant communities that are fundamental to our capital, as households are uprooted because they can no longer afford good quality or stable housing centrally.
We celebrate and endorse initiatives and campaigns, such as Crisis and Shelter England’s calling upon the government to commit to building 90,000 new social homes a year, and [the campaign] Build Social, but it is also important to recognise that London faces a crisis on more than one front.
The first is a lack of stock and the second is housing inequality, as many households who need affordable London homes are simply not eligible, leaving them in a state of increased vulnerability as they miss out on opportunities and affordable housing schemes that would significantly improve their quality of life, and maintain the diverse workforce London has always supported.
A criteria conundrum
The accessibility crisis is perhaps further exacerbated by confusing affordable housing application processes, and many may be very shocked to understand that households can not only earn too much but also too little to be eligible for some affordable housing schemes.
Rent requirements, which are often hidden deep in the small print of planning applications, can start at £30,000 for many affordable housing schemes, with several starting even higher, despite the latest ONS statistics revealing that the median household income of the UK is £30,500.
These requirements effectively mean that those on lower incomes are priced out of the very market that was designed and introduced to support them.
This, combined with a long list of names used to describe affordable housing, only adds to the serious confusion of prospective tenants seeking affordable housing options. Indeed, terms including social housing, London Living Wage housing, submarket housing, and council housing are all used to advertise affordable housing but are very rarely used correctly by anyone outside the industry.
Simple and consistent terminology as well as increased transparency and consistency around minimum income criteria would go far in ensuring people are aware of the options available to them, and the steps they need to take to successfully navigate the selection process to secure safe, good quality, and affordable housing.
Reconsidering accessibility
ONS’s Public Opinions and Social Trends, Great Britain bulletin has shown that, when asked what the most crucial issues facing the UK are, respondents mentioned ‘cost of living’ most often and ‘housing’ fifth.
More than ever, households need increasing support to navigate the affordability gap – especially given 2.7 million people in the UK are having to spend at least half their income on rent, according to Shelter’s quarterly survey of private renters.
Housing associations have a key role in determining access to affordable housing and must work hard, collaborating with government bodies, other like-minded private sector organisations, and the industry’s representative body, the National Housing Federation, to guarantee that the sector meets the needs of those impacted by the growing affordability gap, guaranteeing them much-needed access to affordable housing schemes.
We urgently need an accessible and streamlined affordable housing sector that provides high-quality properties for the demographic that will be our capital’s future.
Main image: Barbara Brownlee is chief executive of Soho Housing Association
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